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  • Where the money is

    - An independent report claims that UK tuition fee hikes have led to a decrease of 15.000 university applicants. Real estate experts remain optimistic nevertheless as investments double for student housing.

    Higher education is about money, also... Two reports from the UK underline this. Yesterday, an analysis by the British Independent Commission on Fees was published indicating that a drop of 15.000 university applicants could be attributed to the tripling of tuition fees.

    "Although it is too early to draw any firm conclusions, this study provides initial evidence that increased fees have an impact on application behaviour. There is a clear drop in application numbers from English students when compared to their counterparts in Scotland, Wales and Northern Ireland," Panel chairman Will Hutton commented.

    Housing demand on the rise

    Another report, however, sees fortunes rising in the higher education sector. Real estate experts argue that "in spite of higher tuition fees being introduced for 2012/13, the UK's higher education system remains heavily oversubscribed, and the development of new student housing has not kept pace with the growth in student numbers."

    This also explains why investments into student housing has more than doubled this year, £800m in the first half of 2012 compared to £375m the year before.  According to CBRE these numbers are "demonstrating the strength of the demand for this niche sector of the real estate market."